Though extended for the near term -- and due to consolidate -- its steep two-week spike is longer-term bullish.

Looking ahead, modest support holds at 9,725, and is followed by a firmer floor at the breakout point of 9,625 matching the August peak of 9,630.

As with the other two benchmarks, the Nasdaq Composite is holding a strong near-term uptrend.

The index topped Monday at 2,142 -- just under the 2,150 target -- and from current levels, modest support points hold at 2,118 and 2,090.

Widening the view to six months adds color regarding the state of play.

Until proven otherwise, the Nasdaq remains within a strong uptrend that roughly tracks its ascending 50-day moving average.

While the index has risen within view of the 2,150 target, better illustrated in the next section, its broader uptrend gets the benefit of the doubt barring a violation of the 50-day.

Moving to the Dow, it's cleared resistance at the August peak, rising within view of the 10,000 mark.

On this wider view, the Dow's first significant support spans from 9,625 to 9,630, matching the August high and its market-crash range top.

And the S&P 500's also broken out, placing distance atop the August peak.

From current levels, significant support spans from 1,039 to 1,044, matching the mid-October high.

The bigger picture

They tried to sell off to start off the week, but the major U.S. benchmarks have yet to pull in.

And from a technical standpoint, a much wider view of the markets points to a possible explanation for the recent strength.

Starting with the Nasdaq, the chart above goes back to March 2007. Each bar above represents each week across that span.

As the chart illustrates, the index has cleared a two-year downtrend, rising within view of notable technical territory.

Recall that the Nasdaq's initial break atop the 1,900 area opened the way to its breakdown point around 2,150, which at the time, held about 13% above prevailing levels. See the July 21 column and July 28 column.

The index topped Monday at 2,142.

This means the Nasdaq has already rallied 12.7% above the 1,900 mark -- the crash range top -- placing it just under the 2,150 target.

And while the Nasdaq's performance is notable in its own right, savvy investors will consider its potential implications for the S&P 500.

As detailed previously, the S&P has broken above its market-crash range top -- loosely corresponding to Nasdaq 1,900 -- and now faces limited chart resistance until the 1,200 area.

(It should be noted that mid-range targets are in play, including the Sept. 29 close of 1,106, and the 1,121 area, matching a 50% retracement of the market crash.)

The slight breakout means investors that established positions during the crash are now flat to positive, making it difficult to draw sellers without a violation of the breakout point -- the 1,044 area -- or a more significant rally.

Summing up the backdrop

The U.S. markets are extended from a near-term perspective, following a two-week run of 7% for the S&P 500.

A consolidation phase is due at some point.

Yet more importantly, longer-term uptrends have been established, and the S&P faces limited resistance following last week's breakout.

On the next pullback, the following support points stand out:

-- Dow support around 9,630. Until this month, 9,625 marked its best close of the market crash, and the August peak holds at 9,630.

-- Nasdaq support in the 2,060 area, matching the August peak of 2,059 and its 50% retracement of the market crash at 2,063.

-- S&P support around 1,040, matching the August high of 1,039 and the mid-October peak of 1,044.

A violation of the areas above would be a starting point for reconsidering the trend. Yet barring this breakdown, the S&P 500 has edged above its market-crash trading range, meaning its technical path of least resistance remains higher.

Tuesday's watch list

The charts below highlight names well positioned technically. These are intended as radar-screen names -- sectors or stocks positioned to move in the near term. For the original comments on the stocks below, check out The Technical Indicator Library.

ETF

Symbol

Mon Close

Support

Resistance

iShares Silver Trust

SLV

$16.54

$15.80

$17.25

Drilling down to sectors, the precious metals are technically well positioned.

As the chart illustrates, the iShares Silver Trust
SLV, -0.31%
has broken out decisively this month, clearing resistance at the June peak.

Recent strength has been driven by a sustained volume increase -- with the ETF hitting 52-week highs -- and a pullback toward the breakout point would mark a high risk/reward entry.

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